The e-KYC process or electronic-Know your customer procedure initiated by the UIDAI as stated by the IRDA will now on be accepted as the valid KYC for all insurance dealings. The implementation of the e-KYC process is likely to hasten the process of securing as well as realizing insurance claims. As with the presentation of the Adhaar Card issued by the UID authority, featuring all the details such as your age, address plus biometric identification among others, investors can complete the KYC process essential for securing insurance cover.

The new e-KYC process will be of help to old insurance customers as well as prospective customers who due to some reason fail to provide requisite identification proofs. So, in order to provide the real benefit of e-KYC to the policyholders and prospective customers, insurers are overhauling their system to include e-KYC.

How e-KYC in insurance is effected?

With the digitization simplifying nearly every process, KYC mandated for customer identification is also now transitioned to e-KYC. For e-KYC to be effected in insurance, customers are required to present the adhaar number. Additionally, record in the system are tallied by scanning the fingerprint. Post-this verification customers are done away with the need to provide any other documents. Also, as KYC of nominee in insurance is equally significant, the implementation of e-KYC will substantially reduce fraudulent claims.

So, the e-KYC verification with consent from the Ministry of Finance under the prevention of money laundering is now an acceptable mode for customer identification provided that the customer allows access to his records in the UIDAI system. With the new digitized e-KYC process not only prospective insurance buyers will be able to secure cover at a faster rate but the process will also assist them in applying for different other investment options available in the market.

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